The euro exchange rate fell sharply against the dollar, helped by the disappointing results of the report IBD / TIPP economic optimism on. As it became known, the economic optimism index fell in May by 2.4%, to 45.1 from 46.2 in April. Values ​​above 50 indicate optimism of consumers, and below 50 - the pessimistic. The index is up 2.1 points below the average for the 12 months, which is 47.2, but 0.7 points above the level of 44.4 reached in December 2007, when the economy entered a recession. The index of economic expectations for the next six months, which reflects an assessment of the economic outlook by consumers in six months, fell by 8.5% to 43.1. The index of personal financial outlook - an indicator of the views of Americans about their personal finances for the next six months - rose by 2.1%, to 54. The index of confidence in U.S. economic policy - an indicator of opinions about how the government's economic policy - fell by 0.5% to 38.3.

The cost of the British pound fell against the U.S. dollar, which has been associated with the triggering of stop orders on the pair at 1.5520. Note that the volume of trading in the markets is quite low due to public holidays in the UK and Asia, and this reinforces the volatility.

We also add that in part influenced by the dynamics of trade data from the British Retail Consortium (BRC), which showed a monthly basis, the consumer price index fell 0.8 percent, which led to the fact that the annual rate rose by only 0.4% , compared with an increase to 1.4 percent per year in March. In addition, it was reported that non-food prices fell by 1.1% on the month and by 1.0% per year, which followed a growth of 0.2 percent per year in March. In the non-food sector, the biggest drop in prices was observed for clothing, footwear and electrical goods. Note that the cost of clothing and footwear fell by 2.5% on the month and 4.7% for the year, compared with a fall of 2.2% in March. We also learned that the price of electrical goods fell 1.2% on the month and 4.8% over the year. The British Retail Consortium also reported that personal accessories, women's and men's clothing was recorded sharp acceleration of deflation in April, while the shoe was deflation that followed the rise in prices in March. The data also showed that food inflation slowed in April to 2.9% compared with 3.5% in March. Food inflation for fresh food has declined to 3.1% from 3.6% in March.

The cost of the Australian dollar fell against the U.S. dollar, after it became known that the Reserve Bank of Australia unexpectedly cut its benchmark interest rate to a record low to support economic growth, following the example of the European Central Bank, which lowered its key interest rate by a quarter point last week . Note that the Central Bank of Australia cut the official interest rate by 25 basis points to 2.75 percent. Economists had expected the Reserve Bank decision to keep the sample rate at 3 percent.

Previously, the RBA noted that the outlook for inflation allows for rate cut if needed to support the demand.

In a statement issued after the meeting today, RBA Governor Glenn Stevens said the bank will use the reduction in key interest rates to encourage sustainable growth in the economy, in line with achieving the inflation target.

Recall that the RBA began its cycle of rate cut in November 2011, and since then it has decreased by 200 basis points.

Meanwhile, we add that today, the RBA kept its outlook on prices, saying that the level of inflation over the next one to two years will meet its goal. However, in the RBA expressed concern about the "extraordinary" power of the local currency.

European stocks climbed, extending a near five-year high for the region's benchmark gauge, as financial companies from HSBC Holdings Plc (HSBA) to Allianz SE reported results that topped analysts' estimates.

The Stoxx Europe 600 Index (SXXP) rose 0.3 percent to 301.74 at the close of trading. The gauge has climbed 7.9 percent this year to its highest level since June 2008 as central banks maintained stimulus measures.

National benchmark indexes climbed in 16 out of 18 western European markets today.

FTSE 100 6,557.3 +35.84 +0.55% CAC 40 3,921.32 +14.28 +0.37% DAX 8,181.78 +69.70 +0.86%

HSBC (HSBA) rose 3 percent to 735 pence after saying first-quarter pretax profit almost doubled to $8.43 billion, as bad debts declined and it cut costs. That beat the $8.04 billion average estimate of nine analysts surveyed.

Societe Generale (GLE) increased 5.7 percent to 30.14 euros after it said first-quarter profit fell 50 percent to 364 million euros ($476 million), hurt by accounting charges related to its debt. That still beat the 317 million-euro average estimate of analysts.

Commerzbank (CBK) added 2.6 percent to 11.09 euros. Germany's second-largest lender reported a first-quarter loss of 94 million euros after booking costs associated with firing staff, compared with a profit of 355 million euros a year earlier. That still beat the average loss estimate of 153.7 million euros of analysts surveyed.

Allianz (ALV) gained 3.6 percent to 120.70 euros after reporting a 24 percent rise in first-quarter profit to about 1.7 billion euros after results improved at all of its businesses. Operating profit of 2.8 billion euros also topped analysts' estimates.

Hochtief AG (HOT) advanced 5.9 percent to 56.51 euros. Germany's largest construction company agreed to sell its airports division to Public Sector Pension Investment Board of Canada for about 1.5 billion euros as it streamlines its business to focus on more profitable units.

The price of oil rose today, while reaching the highest level in nearly a month, which was supported by strong German data, policies of central banks and tensions in the Middle East. However, the oil has not been able to keep its positions, and now shows a slight decline. Add that to affect the dynamics of trade concerns about supply disruptions following the Israeli air strikes on Syria, although the effect of this somewhat weakened.

Economists note that oil and other risk-sensitive assets such as stocks, have been supported by renewed optimism about the global economy, largely due to measures to support from central banks. We remind that the Reserve Bank of Australia cut interest rates by 25 basis points to a record low of 2.75%. On Monday, the head of the European Central Bank (ECB), Mario Draghi said the ECB to cut rates again if need be.

The attention of many traders now again focused on China - the second largest economy in the world that tomorrow will present preliminary trade data for April.

It is also worth noting that constrains prices from plunging further out further expansion of commercial crude oil inventories in the U.S., after reaching a record high last week.

In addition, experts from Morgan Stanley announced today that prices may continue to rise in the second half of 2013. The bank said that the global oil balance looked much more rigid and this summer Brent Brent, is likely to trade in the range of $ 110 to $ 115 per barrel.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) dropped to 95.45 dollars per barrel, the lowest intraday level since Dec. 19.

June futures price for North Sea Brent crude oil mixture fell $ 0.35 to $ 105.00 a barrel on the London exchange ICE Futures Europe.

Gold prices fell sharply, while continuing its yesterday's drop, as the appeal of gold as an alternative investment disappeared after the stock markets rose on prospects for sustainable stimulation of the central bank stimulus, while stocks in the stock funds fell to its lowest level in more than three years.

Metal came under pressure as the United Kingdom and Japan have returned from a long weekend, and immediately drew attention to yesterday's comments head of the European Central Bank (ECB), Mario Draghi, who confirmed that the bank is ready to cut rates again if need be. Meanwhile, on the dynamics of trade influenced the decision of the Central Bank of Australia cut rates to a record low - 2.75%, and the statement that the RBA may make one more drop. Note that the decline in interest rates usually is good for gold, as they stimulate investors to invest in non-interest-bearing assets such as precious metals, but cyclical assets, including stocks appear more attractive at the moment, analysts said.

In addition, the data showed that stocks in the SPDR Gold Trust fell yesterday by 0.3% to 1,062.30 tons, while reaching its lowest level since August 2009.

The cost of the June gold futures on COMEX today dropped to 1446.80 dollars an ounce.

U.S. stock futures rose. European markets climbed in morning trading, driven by strong results from financial firms Societe Generale and HSBC. Asian markets ended higher.

Global Stocks:

Nikkei 14,180.24 +486.20 +3.55%

Hang Seng 23,047.09 +132.00 +0.58%

Shanghai Composite 2,235.57 +4.41 +0.20%

FTSE 6,547.85 +26.39 +0.40%

CAC 3,936.3 +29.26 +0.75%

DAX 8,186.39 +74.31 +0.92%

Crude oil $95.71 -0.47

Gold $1448.50 -1.33%

EUR/USD

Offers $1.3240/50, $1.3200, $1.3180, $1.3130/50

Bids $1.3050, $1.3020/00

GBP/USD

Offers $1.5630, $1.5600/10, $1.5585, $1.5560/70

Bids $1.5520, $1.5500, $1.5480, $1.5450, $1.5430/20

AUD/USD

Offers $1.0330, $1.0280/00, $1.0230/50, $1.0220

Bids $1.0155/50, $1.0120/15, $1.0100, $1.0090/85, $1.0050, $1.0020/15

USD/JPY

Offers Y100.00, Y99.50/60

Bids Y98.85/80, Y98.50, Y98.25/20, Y98.00

EUR/JPY

Offers Y131.00, Y130.50, Y130.20, Y129.95/00, Y129.80/85

Bids Y129.25/20, Y129.00, Y128.80/70, Y128.50

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8500/10, stg0.8480/85, stg0.8450

Bids stg0.8400

European stocks rose as Societe Generale and HSBC reported results that topped analysts' estimates and Germany data was better then expected.

Currently:

FTSE 6,538.77 +17.31 +0.27%

CAC 3,920.07 +13.03 +0.33%

DAX 8,161.19 +49.11 +0.61%

EUR/USD $1.2850, $1.3050, $1.3100, $1.3150

USD/JPY Y98.50, Y99.00, Y99.50, Y9965, Y99.75

EUR/CHF Chf1.2165, Chf1.2255

Asian stocks rose for a second day and Japan's Topix Index erased losses from the 2008 collapse of Lehman Brothers Holdings Inc. as the Reserve Bank of Australia cut its benchmark interest rate and the European Central Bank said it's ready to lower borrowing costs further.

Nikkei 225 14,180.24 +486.20 +3.55%

Hang Seng 22,993.18 +78.09 +0.34%

S&P/ASX 200 5,143.7 -12.50 -0.24%

Shanghai Composite 2,235.57 +4.41 +0.20%

Mitsubishi Heavy Industries Ltd. jumped 4.9 percent after Japan's No. 2 maker of electricity generation equipment and its partner Areva SA won a deal to build a nuclear-power plant in Turkey.

Toyota Motor Corp. rose 4.9 percent in Tokyo after the Nikkei newspaper reported the world's biggest carmaker will report earnings tomorrow that may exceed analyst estimates.

SJM Holdings Ltd. gained 3.7 percent in Hong Kong after Asia's largest casino company reported higher first-quarter profit.

01:30 Australia Trade Balance March -0.18 0.20 0.31

01:30 Australia House Price Index (QoQ) Quarter I +1.6% +1.9% +0.1%

01:30 Australia House Price Index (YoY) Quarter I +2.1% +4.0% +2.6%

04:30 Australia Announcement of the RBA decision on the discount rate 3.00% 3.00% 2.75%

The dollar snapped a three-day advance against Japan's currency, the longest streak in more than two weeks, sustained by better-than-expected U.S. payrolls data. The yen depreciated to above 99 per dollar for the first time since April 26 on May 3, when U.S. Labor Department data showed payrolls expanded by a greater-than-expected 165,000 workers last month and the jobless rate unexpectedly declined to 7.5 percent. The currency touched 99.45 yesterday.

The euro remained lower against the greenback before reports forecast to show factory activity slowed in Europe's two biggest economies. Demand for the 17-nation currency was capped before reports forecast to show German factory orders and French industrial production both fell in March from the previous month. German orders probably slid 0.5 percent, while French activity contracted 0.3 percent, according to the median economist forecasts in Bloomberg News surveys.

The Australian dollar fell against its major peers on prospects the central bank may cut borrowing costs to a record low today. In Australia, traders see more than a 50 percent chance the Reserve Bank will lower its benchmark rate to a record 2.75 percent today, according to Bloomberg calculations based on overnight-index swap rates. By contrast, of the 29 economists surveyed by Bloomberg, 8 predict a cut.

Japanese markets reopened today following a four-day holiday weekend.

EUR / USD: during the Asian session, the pair is trading around $ 1.3080

GBP / USD: during the Asian session, the pair is trading around $ 1.5540

USD / JPY: during the Asian session, the pair fell to Y98.80

Change % Change Last

GOLD 1,469.50 5.30 0.36%

Change % Change Last

Nikkei 225 Closed

Hang Seng 22,917.22 +227.26 +1.00%

S&P/ASX 200 5,156.2 +26.70 +0.52%

Shanghai Composite 2,231.42 +25.92 +1.18%

FTSE 100 6,521.46 +60.75 +0.94%

CAC 40 3,907.04 -5.91 -0.15%

DAX 8,112.08 -10.21 -0.13%

Dow -5.07 14,968.89 -0.03%

Nasdaq +14.34 3,392.97 +0.42%

S&P +3.09 1,617.51 +0.19%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3072 -0,31%

GBP/USD $1,5539 -0,21%

USD/CHF Chf0,9383 +0,32%

USD/JPY Y99,32 +0,33%

EUR/JPY Y129,86 +0,02%

GBP/JPY Y154,34 +0,12%

AUD/USD $1,0251 -0,63%

NZD/USD $0,8513 -0,22%

01:30 Australia Trade Balance March -0.18 0.20

01:30 Australia House Price Index (QoQ) Quarter I +1.6% +1.9%

01:30 Australia House Price Index (YoY) Quarter I +2.1% +4.0%

04:30 Australia Announcement of the RBA decision on the discount rate 3.00% 3.00%

04:30 Australia RBA Rate Statement

05:45 Switzerland SECO Consumer Climate Quarter I -6 -3

05:45 Switzerland Unemployment Rate April 3.1% 3.1%

06:45 France Industrial Production, m/m March +0.7% -0.2%

06:45 France Industrial Production, y/y March -2.5% -1.3%

06:45 France Trade Balance, bln March -6.0 -5.3

07:00 United Kingdom Halifax house price index April +0.2% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y April +1.1%

07:00 Switzerland Foreign Currency Reserves April 438.3 435.0

10:00 Germany Factory Orders s.a. (MoM) March +2.3% -0.4%

10:00 Germany Factory Orders n.s.a. (YoY) March 0.0% -2.9%

19:00 U.S. Consumer Credit March 18.1 16.2

20:00 U.S. Treasury Sec Lew Speaks

20:30 U.S. API Crude Oil Inventories April +5.2

21:00 New Zealand RBNZ Financial Stability Report May

21:05 New Zealand RBNZ Governor Graeme Wheeler Speaks

23:01 United Kingdom BRC Retail Sales Monitor y/y April +1.9% +1.9%